Chapter 14 reviews the economics and politics of public subsidies/provision of childcare and early childhood education (ECE). Underlying public provision of ECE are complex political issues of family “rights” in raising children and the age at which the State should intervene to “assure” that children are prepared for a productive role as adult citizens. The work of sociologists and economists on social class differences in children’s preparation for school has been part of this reconsideration of when in a child’s development public responsibility for education begins. The chapter presents economists’ case for public investment in ECE in terms of the social benefits to such investment and discusses studies that estimate the benefits, including whether ECE helps to close the socio-economic and race achievement gaps in schools. The chapter also reviews the US and international data on access to ECE, as well as studies that assess which types of ECE are more effective than others.
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